Hong Kong–based Rega Technologies is seeking to set up a China-focused long-short equities hedge fund in January, Reuters reports. The firm, which has garnered nearly $40 million in initial capital from partners, friends and family, has been established by the Hong Kong Polytechnic University’s former assistant professor of finance Jie Zhang and former Vision Investment executive Gang Fu.

Rega has secured a license from the market regulator last week and is now in discussions with institutions in China, Singapore, Europe and the U.S. to raise funds. The fund, with a capacity to take in $1 billion, will mainly concentrate on undervalued Hong Kong–listed stocks screened by its in-house quantitative models that assess financial statement consistencies. Rega has appointed Jie Gan and Xin Chang as directors.

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